Ergo

Just Call Us Subprime Sam

These are sobering and undeniable points.

Clearly, the leadership of this country has been turned over to its own evil desires. Yet the common people think everything will always turn out fine, b/c since WWII, it has been that way. Most people do not see what is so clearly coming. I respectfully submit that the crisis ahead will be broader than financial trouble. What will people do when the real panic starts?

And people have forgotten that we are still a nation at war. There are a lot of potential catalysts out there for epic problems. Our world has been quiet for a very long time now. How much longer can that last?

The Truth Behind China's Currency Peg

Clearly, we have a massive house of cards that is primed and ready to fall under any number of catalysts. Tough times are coming soon.

#1 Story on UK Telegraph website

Thanks for sharing. People have convinced themselves that we can have effective government and society without morality. The long term result is obvious, and will certainly have dire financial consequences - as people at the highest levels squander and steal money on a near unimaginable scale, with zero public scrutiny. Your Rome analogy is right on target.

Financial Greed and Christianity

2 Timothy 3:1-5

But mark this: There will be terrible times in the last days. People will be lovers of themselves, lovers of money, boastful, proud, abusive, disobedient to their parents, ungrateful, unholy, without love, unforgiving, slanderous, without self-control, brutal, not lovers of the good, treacherous, rash, conceited, lovers of pleasure rather than lovers of God— having a form of godliness but denying its power. Have nothing to do with them.

Silver Prices Are About to Fall

Thank you for your thoughtful analysis of short term prospects. Such a sell off would make for attractive entry points.

Thursday Outlook: Commodities, Global Markets

Love the Being There quotes. I really don't think the Fed understands the long term implications of what they're doing.

As for the short term, action on the casino floor continues. Good luck.

FOMC Statement: Blue-Line Comparison

Love the blue-line. Nice comparison.

U.S. Video Game Makers Face Eastern Invasion

Blizzard has some monster games coming out. Three Starcraft titles coming soon. And Diablo III to follow. These PC games will be colossal hits, and everyone in their massive fan base will buy them. Blizzard's quality level isn't something that any cheap Eastern company can even dream about matching - and most Western companies haven't been able to match it either. (I don't regard Sony as a cheap company).

Generally, quality and creativity makes a huge difference to game sales. Blizzard manages this better than anyone, such as by refusing to set hard deadlines on their game releases. Cheap programmers spitting out garbage are zero threat. Even if a cheap Eastern company came up with an innovative gaming concept, any Western company can take the concept and make it better. (IP protections are likely too specific to really protect a concept broad enough to be a "game-changer." Most everything has been tried somewhere before, even if the right marketing twist hasn't been found).

As for WoW's problems in China, I don't expect them to go away any time soon: World of Warcraft is a time consuming game that generates a vast online community wherever it is sold. The Chinese government will be very, very reluctant to approve of such a thing. Imagine all those worker drones playing video games for hours at a time, and conversing freely while completing quests based on American values! Scandolous! Other titles like the Star Craft or Diablo series, could fare better, since they can be played individually in short segments. Or else there will be a massive black market - always a possibility in China.

Bear Market Rallies and Lessons of History

This situation is an outlier. But that's not a good thing. We have some very hard times ahead.

How Much Is a Stimulus Job Worth?

Talk about funny accounting. This article proposes the financial equivalent of a perpetual motion machine. Such a thing just isn't possile. E.g., money printing has its limits.

Besides, what tangible value was actually created by all this spending? Economic inefficiency at its finest.

Upside GDP Surprise: Misleading

Good summary Peter. The storm will come sooner and harder than most people expect. The next several years are likely to be hard ones. And that's before the demographic shift really starts hammering us.

There are so many historical examples. The Weimar Republic of Germany will be receive a lot more attention in the coming years. For now, everyone talks about the Great Depression, even if they don't understand the lesson.

The Aftershock: Where Does the Next Investment Opportunity Lie?

Yes. Good article. I will certainly enjoy looking up information on the author, and I'll most likely read that book too.

On substance, the overall thesis is sound. We are going to see this play out. So many people don't believe it. And afterwards, a lot of people will want to know why the talking heads didn't see it coming - or will blame it on an event. But it is perfectly obvious if you think objectively. The real question is timing and positioning (and preparation).

Friday Outlook: Commodities, Global Markets

As always, thank you for your thoughts. I read your posts every day. Clearly for me, the best thing to do today is to work hard at my job and earn another paycheck. I'll be waiting to see what to do with it.

Sold SPY Calls and Sitting on a Mountain of Cash

I'm right there with you TraderMark. Mostly in cash, and taking more risk than I'd like by being in dollars. Ughh...

What Stories Aren't Being Told?

The risk of terrorist attacks on U.S. soil.

People have forgotten that we are a nation at war. Likely efforts by our enemies are not being publicly discussed, and we have no idea how we are being protected against them. This is a large risk, unreported, unprepared for, and severely unappreciated. This is the news event that everyone is missing.